The present invention relates to methods, systems, and computer programs for investing.
U.S. and foreign stock markets have historically trended upward over long time periods but have experienced many declines, some significant, over shorter time periods. Investors who do not need to sell assets can usually weather these downturns, but retirees and others who rely on savings for living expenses and emergencies are often forced to sell investment assets during down markets. Selling investment assets when markets are low is of course undesirable because fewer assets remain to benefit from future market recoveries. Thus, many investment advisors recommend that retirees and other similarly situated investors minimize their exposure to equities, especially higher risk ones.
Annuities, bond funds, money market funds, bank certificates of deposit, and similar investments are typically less volatile than stocks and provide relatively predictable income streams, so they are often recommended for retirees and other similarly situated investors. However, such investments often do not provide enough growth potential to keep up with inflation and increased income needs, especially for people who may need to live on their investments for many years.